A subsidiary has the status of an independent legal person, owns all its own property, has its own company name, articles of association and board of directors, conducts business activities and various civil activities in its own name, and independently bears all consequences and responsibilities brought about by the company's actions. However, major decisions or major personnel arrangements involving the interests of the company still have to be decided by the parent company. The form of subsidiary can isolate the operating risks of parent company and subsidiary company, and the parent company bears limited liability for the operating risks of subsidiary company to the extent of capital contribution.
A branch is a branch under the jurisdiction of the head office, which refers to an organization established by the company outside its residence and engaged in activities in its own name. The branch company does not have the qualification of enterprise legal person, and its civil liability shall be borne by the head office. Although there is the word company, it is not a real company and has no articles of association. The company name can only add the word "branch" after the name of the head office. The form of branch is conducive to the external operation and brand building of enterprises, with low management cost and high resource utilization efficiency. A registered branch company does not need registered capital, and can directly carry out business according to the business scope and various business qualifications of the group company, without going through the formalities for examination and approval of foreign investment, and without setting up a separate labor and finance department, board of directors and board of supervisors.
Division refers to the organizational structure that combines related R&D, procurement, production and sales departments into a relatively independent unit based on a certain product, region or customer. It is manifested in the establishment of multiple business divisions and undertakings under the leadership of the head office.